From the folks at CIBC, via Dave Rosenberg’s daily missive:
Will anyone really fear a default in dollar-denominated debt by the one country that has the power to print those dollars if need be? True, Treasuries won’t be triple A, so in the rater’s eyes, they won’t be as safe as, say, mortgage-backed CDOs were prior to 2007. But they will still be safer than Japanese government bonds, which manage to clear the market at only 1.1% in the 10-year space.
As I’d Tweeted a while back: Come what may, the US will always be the least dirty shirt in the hamper, despite Washington’s best efforts.
Related: I’m told that the phrases “exceptionally low” and “extended period” are being locked, protected and made undeletable in all upcoming FOMC statements via a Word security feature.